Holy Name University

City of Tagbilaran
College of Business and Accountancy
HANDOUTS FOR CAT REVIEW

General Instructions: Please read the problem carefully and choose the
letter of your answer.
SPECIAL JOURNALS

1. Multicolumn journals that have columns reserved for the specific types of
transactions. Special journals simplify the journalizing and posting process.
a. General journal c. General ledger
b. Special journal d. Special ledger

2. The following are special journals, except

a. Sales journal c. Cash payments journal
b. Cash receipts journal d. None of these

3. Only transactions involving sale of merchandise on account or on credit terms are

recorded in this book.
a. Sales journal c. Purchase journal
b. Cash receipts journal d. Cash payments journal

4. Only transactions involving purchase of merchandise on account or on credit terms

are recorded in this book.
a. Sales journal c. Purchase journal
b. Cash receipts journal d. Cash payments journal

5. Only transactions involving receipts of cash are reported in this book.

a. Sales journal c. Purchase journal
b. Cash receipts journal d. Cash payments journal

6. Only transactions involving cash payments are recorded in this book.

a. Sales journal c. Purchase journal
b. Cash receipts journal d. Cash payments journal

7. Statement I. Sales of merchandise of an account is recorded in cash receipts journal

Statement II. Purchase of merchandise in cash is recorded in the purchase journal.
a. Both statements are correct c. Both statements are incorrect
b. Only statement I is correct d. Only statement II is correct

8. A sale of delivery car on account no longer used by business is recorded in the

a. Sales journal c. General journal
b. Cash receipts journal d. None of these

9. Merchandise bought on account is recorded in the

a. General journal c. Sales journal
b. Purchase journal d. Cash payments journal

10. Which of the following cannot be recorded in the general journal when special
journals are kept by the entity?
a. Purchase returns of merchandise bought on account
b. Property and equipment invested in the business
c. Collection from customer’s account
d. None of these

11. Which of the following cannot be recorded in the cash receipts journal?
a. Refund of merchandise bought for cash
b. Return of merchandise bought on account
c. Collection from customers’ account
d. Sold of merchandise for cash

12. Which of the following will be recorded in the General Journal when Special Journals
are used?
a. Closing entry c. Adjusting and correcting entries
b. Reversing entry d. All of the above

13. The document that is issued by the seller to the buyer when the latter pays his
accounts
a. Provisional receipt c. Cash invoice
b. Temporary receipt d. Official receipt
 14. The source document prepared by the business every time goods are sold.
a. Official receipt c. Purchase order
b. Delivery receipt d. None of these

15. The document that usually accompanies with a charge sales invoice as a proof that
goods have been delivered and acknowledged by the customer
a. Purchase order c. Delivery receipt
b. Receiving report d. Official receipt

16. Which of the following accounts will be seen in the sales journal?
a. Accounts receivable c. Sales discount
b. Input tax d. None of these

17. For sales transaction recorded in the sales journal, the debit is entered in the
a. Accounts receivable column c. Sales column
b. Output tax column d. None of these

18. Statement I. The cash receipts journal will have more columns than that of sales
journal
Statement II. For transactions entered in the cash receipts journal, only the cash
account will have a debit column.
a. True, True c. False, False
b. True, False d. False True

19. In the purchase of merchandise on account transaction, the entry in the Purchase
Journal will require credit to
a. Purchases c. Accounts Payable
b. Sales d. Accounts Receivable

20. When the business purchased store supplies on account it will be recorded in the
a. Cash payments journal c. General journal
b. Purchase journal d. None of these

GENERAL AND SUBSIDIARY LEDGER

21. Statement I. At the end of each month, the amount that appear in the special
journals are totaled and posted to the general ledger.
Statement II. At the end of each month, entries in special journals are totaled
while the entries in the general journals are not.
a. Both statements are correct c. Only statement II is correct
b. Only statement I is correct d. Both statements are incorrect

22. What is the financial record to see the accounts receivable balance of a specific
customer?
a. Accounts payable subsidiary ledger
b. Accounts receivable subsidiary ledger
c. Accounts receivable general ledger
d. Accounts payable general ledger

23. The accounts payable subsidiary ledger shall be prepared

a. in the order of account balances from largest to smallest balance
b. in the order of account balances from smallest to largest balance
c. in alphabetical order
d. None of the above

24. The following transactions will be posted in the Accounts Receivable subsidiary
ledger, except
a. Cash sales c. Sales return
b. Sales on account d. None of these

25. Which of the following transactions will be posted in the Accounts Payable
Subsidiary Ledger?
a. Purchase discount c. Collection from customer
b. Sales return d. None of these

VOUCHER SYSTEM
26. It is a control technique that requires that every acquisition and subsequent
payment be supported by an approved voucher.
a. Ledger system c. Voucher system
b. Imprest system d. None of these

27. This document shows that the acquisition is proper and that payment is authorized.
It contains spaces for accounts to be charged, peso amounts, approval and
authorization of payment along with other details.
a. Voucher c. Purchase order
 b. Official receipt d. None of these

28. The following documents are necessary for the preparation of voucher, except
a. Purchase requisition c. Receiving report
b. Purchase order d. None of these

29. Special journal used to record purchases of all types of assets and services in
which pre-numbered vouchers are recorded in numerical sequence.
a. Purchase journal c. Voucher register
b. Cash payment journal d. None of these

30. The following information is found in the voucher register, except

a. Sundry accounts c. Payee
b. Voucher payable d. None of these

31. Statement I. When goods purchased are completely returned and a credit memo is
received, the return is noted on the voucher, the credit memo is attached, and the
voucher is placed in the paid vouchers.
Statement II. If a partial return is made and a credit memo is received, the return
is noted on the voucher, the credit memo is attached, and the voucher is returned to
the unpaid vouchers file
a. True, True c. False, True
b. True, False d. False, False

32. A special journal used to record all checks written in a voucher system. A copy of
the check is used to enter the payment in a check register.
a. Check register c. Voucher register
b. Cash payment journal d. None of these

33. The following information is found in the check register, except

a. Check number c. Voucher payable
b. Voucher number d. None of these

34. Statement I. If partial payments are planned at the time purchase is made, separate
vouchers are prepared for each payment.
Statement II. If a partial payment is made after a voucher is created and entered,
the original voucher is cancelled and a new voucher is created.
a. True, True c. False, True
b. True, False d. False, False

35. If a complete return is made and a credit memo is received

Statement I. The return is noted in the payment column of the voucher register
Statement II. A general journal entry is made for the return by debiting Voucher
Payable and crediting Purchase Returns and Allowances.
a. True, True c. False, True
b. True, False d. False, False

COMPREHENSIVE PROBLEM
The following were the transactions of Pen Trading Company, a VAT-subject business who
uses periodic inventory system. (Notes: Amount are exclusive of VAT)
DR CR
Cash In Bank 1,400,000
Accounts Receivable 145,000
Allowance for Doubtful Accounts 10,000
Merchandise Inventory 500,000
Supplies 18,000
Input Tax 12,000
Furniture and Equipment 1,500,000
Acc Dep'n-Furniture & Equipment 350,000
Transportation Equipment 800,000
Acc. Dep'n-Transportation Equipment 150,000
Accounts Payable 200,000
Accrued Expense 35,000
Output Tax 18,000
Pen, Capital 3,500,000
Sales 132,000
Purchases 20,000
4,395,000 4,395,000
Dec 1 Mr. Pen additionally invested the following:
- Bank Deposit, P450,000 (OR No. 21345)
- Service Vehicle, P1,800,000.
2 Purchased Merchandise in cash from Nana Trading costing P150,000 and paid
freight and handling, P2,500. (Voucher No. 1001, Check no. 1234)
3 Returned P3,000 cost of merchandise to Nana Trading due to some defects
and no replacements have been made (OR No. 21346).
5 Sold merchandise for cash, P120,000 to Ling Grocery and gave a 3% trade
discount. (Invoice No. 120044; OR No. 21347). Freight on shipment,
P3,500. Freight terms: FOB destination, freight prepaid (Voucher no.
1002; Check no. 1235)
7 Purchase merchandise on account from Helcurt Co., P50,000. Term: 3/10,
N/30. (Invoice No. 22467, Voucher No. 1002)
8 Sold merchandise on account to Oddette Trading, P185,000. Term: 2/10,
N/30. (Invoice No. 120045)
9 Purchased merchandise on account from John & Sons Co. costing P230,000.
Term: 2/10 EOM. (Invoice No. 66896; Voucher No. 1003)
9 Purchased store supplies on account from Rafaela Co., P2,000. (Invoice
No. 80565; Voucher No. 1004)
10 Received P4,000 worth of merchandise from Oddette Trading for not
conforming with the order and was not replaced. (Voucher No. 1005)
11 Paid the account with Helcurt Co., P48,500 plus 12% VAT after availing of
the 3% purchase discount. (Voucher no. 1006; Check No. 1236)
12 Paid P1,800 cash on one-year insurance policy effective December 1.
(Voucher No. 1007, Check No. 1237)
13 Sold merchandise on account to Selena Co., P80,000. Term: 2/10, N/30.
(Invoice No. 120046)
15 Purchased merchandise on account from Zilong Enterprise, P70,000. Term:
3/10, N/30. (Invoice No. 17826; Voucher No. 1007)
18 Returned P1,500 cost of merchandise to Zilong Enterprises due to bad
order and was not replaced.
18 Collected in full the account of Oddette Trading. (OR No. 21348)
20 Sold merchandise for cash, P50,000 to Vale Enterprises and gave a 1%
trade discount. (Invoice No. 120047, OR No. 21349)
22 Received P500 worth of merchandise from Vale Enterprises as item breakage
and was not replaced due to out of stock. (Voucher No. 1008, Check no.
1238)
23 Collected from Selena Co. the amount of P78,400 plus 12% VAT net of 2%
discount on Dec. 13 sales on account. (OR No. 21350)
26 Sold merchandise on account to Chou Commercial, P420,000. Term: 3/10.
EOM. (Invoice No. 120048)
27 Transferred P5,000 to personal checking account. (voucher No. 1009, Check
no. 1239)
31 Paid the following expenses for the month: (Voucher No. 1010, Check No.
1240)
Salaries P30,000
Utilities 10,000
Taxes and Licenses 5,000

Answer the following questions:

36. What is the total amount debited to Accounts Receivable per sales journal?
a. 685,000 b. 767,200 c. 685,200 d. None of these

37. What is the total amount debited to Cash in bank per cash receipts journal?
a. 926,268 b. 453,600 c. 727,168 d. None of these

38. What is the amount that will be posted from the purchase journal to the purchase
account ledger?
a. 500,000 b. 562,800 c. 350,000 d. None of these

39. What is the total amount credited under the Sundries column of the cash payments
journal?
 a. 0 b. 1,500 c. 58,750 d. None of these

40. What is the total amount of the debit column on the general journal?
a. 1,806,480 b. 1,880,160 c. 1,808,160 d. None of these

41. What is the amount posted to the debit side of the Purchase account ledger from cash
payments journal?
a. 150,000 b. 350,000 c. 250,000 d. None of these

42. What is the balance for cash?

a. Debit balance, 2,044,688 c. Debit balance, 2,362,268
b. Debit balance, 2,326,268 d. None of these

43. What is the balance for accounts receivable?

a. Debit balance, 912,200 c. Debit balance, 615,400
b. Debit balance, 921,200 d. None of these

44. What is the balance for sales?

a. Credit balance, 982,900 c. Credit balance, P850,900
b. Credit balance, 928,900 d. None of these

45. What is the debit/credit column total in the trial balance?

a. 7,993,788 b. 7,939,788 c. 7,939,878 d. None of these

Date Voucher No. Transaction

Apr 8 1001 Accurate Clocks, Inc., purchase of inventory, P3,300, terms: 3/10,
n/30
9 1002 Ace Appliance, purchase of store equipment, P15,000, Check no. 3025
was issued on April 15
10 1003 Island City Mall, purchase of store supplies, P1,600, Check no. 3024
was issued on April 10
15 1004 PLDT, monthly telephone expense, P560
15 1005 Salaries, gross pay – P15,000; Contributions withheld – P2,500, Check
no. 3026 was issued on Apr. 15

46. What is the total amount under the debit column of Sundries per Voucher Register?
a. 32,400 b. 35,460 c. 2,500 d. None of these

47. What is the total amount under the credit column of Sundries per Voucher Register?
a. 32,400 b. 35,460 c. 2,500 d. None of these

48. What is the total amount under debit column of Voucher payable per Voucher Register?
a. 32,400 b. 35,460 c. 2,500 d. None of these

49. What is the total amount under debit column of Voucher payable per Check Register?
a. 29,100 b. 35,460 c. 32,400 d. None of these

50. What is the total amount under credit column of Cash in bank per Check Register?
a. 29,100 b. 35,460 c. 32,400 d. None of these

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